DOTr readying fuel subsidy for PUV operators, drivers amid Middle East conflict

The Department of Transportation (DOTr) on Monday said it is preparing for the possible release of fuel subsidies for public utility vehicle (PUV) operators and drivers should fuel prices further spike amid the ongoing conflict in the Middle East.

The DOTR and its attached agency, the Land Transportation Franchising and Regulatory Board (LTFRB) are preparing the documents for the possible roll-out of the fuel subsidy should crude prices hit $80 a barrel.

In a statement, DOTr Secretary Giovanni Lopez said this is in line with President Ferdinand Marcos Jr.’s directive to ensure that the government is ready to aid PUV drivers and operators in case of further oil price hikes.

The government has a P2.5 billion fuel subsidy for PUV drivers and operators that will be distributed once crude prices hit the $80 per barrel threshold.

“What is more interesting right now is we have a fuel subsidy. I instructed the road sector to start the documentation, the processing of the fuel subsidy,” Lopez said.

“Upang sa ganun, if we meet the threshold na sinasabing $80 per barrel, ang gagawin na lang namin is basically to give the subsidy,” he added.

(That way, if we meet the threshold of $80 per barrel, what is left for us to do is basically to give the subsidy.)

Lopez noted that the LTFRB is currently deliberating on fare hike petitions for PUV vehicles in light of recent oil price hikes.

“Even without the problem now sa Middle East, pinag-aaralan na ng LTFRB ‘yung possibility na magkaroon ng fare hike. Meron silang pending petition with that,” he added.

(Even without the problem now in the Middle East, the LTFRB is studying the possibility of a fare hike. They have pending petitions on that.)

Fuel prices are set to increase anew by more than P1 a liter on Tuesday, March 3, with diesel products hiking prices for the 10th consecutive week.

This latest round of fuel price increases will not reflect upward price adjustments due to the Middle East conflict, which began over the weekend after the United States and Israel launched air strikes on Iran. — JMA, GMA Integrated News